SB 5944 requires that every new statutory state spending program include an expiration date that is no more than 10 years from the effective date of the spending program, except as otherwise provided. New statutory state spending program is defined as a state statute that:
- Establishes a new state expenditure program, establishes a new state agency or department, expands a state entitlement program, or establishes a new or expanded distribution of state revenues to political subdivisions of the state or other entities; and
- Is projected to result in increased state expenditures in excess of $1 million in state funds in the program’s first full fiscal biennium of implementation.
Additionally, SB 5944 requires that every bill enacting a new statutory state spending program include a state spending performance statement. The bill describes what such a statement must include.
The Joint Legislative Audit and Review Committee (JLARC) is directed to review new statutory state spending programs according to a schedule developed by the JLARC. Factors that must be considered in the review of the new statutory state spending program are delineated.
JLARC must also provide recommendations to the fiscal committees of the legislature as to whether the new spending program should be continued without modification, modified, scheduled for sunset review at a future date, or terminated immediately. The recommendation to terminate would be based on a determination that the new program did not achieve the ascertainable metrics specified in the state-spending program spending performance statement.
Senate Floor Amendment: The Senate Floor Amendment did the following:
Exempted new statutory state spending programs from the bill if the program is self-supported by fees.